Class 12 Micro Economics - Chapter Production and Costs NCERT Solutions | What are the average fixed cost, average

What is the total product of input?

Let the production function of a firm be Q=5L1/2K1/2Q=5L1/2K1/2 Find out the maximum possible output that the firm can produce with 100 units of LL and 100 units of KK.

When does a production function satisfy decreasing returns to scale? 

What do the long-run marginal cost and the average cost curves look like? 

Why does the SMC curve cut the AVC curve at the minimum point of the AVC curve? 

What does the average fixed cost curve look like? Why does it look so? 

Explain the relationship between the marginal products and the total product of an input. 

Why is the short-run marginal cost curve 'U'-shaped? 

What is the law of variable proportions? 

The following table gives the total product schedule of labour. Find the corresponding average product and marginal product schedules of labour.

What would be the shape of the demand curve so that the total revenue curve is?

(a) A positively sloped straight line passing through the origin?

(b) A horizontal line?

Explain market equilibrium.

Discuss the central problems of an economy.

What are the characteristics of a perfectly competitive market?

What do you mean by the budget set of a consumer?

From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:

When do we say that there is an excess demand for a commodity in the market?

What do you mean by the production possibilities of an economy?

How are the total revenue of a firm, market price, and the quantity sold by the firm related to each other?

What is budget line?

How does the budget line change if the consumer’s income increases to Rs 40 but the prices remain unchanged?

How does the budget line change if the price of good 2 decreases by a rupee
but the price of good 1 and the consumer’s income remain unchanged?

What is the supply curve of a firm in the long run?

What do you mean by an ‘inferior good’? Give some examples

Distinguish between microeconomics and macroeconomics.

What is a production possibility frontier?

At the market price of Rs 10, a firm supplies 4 units of output. The market price increases to Rs 30. The price elasticity of the firm’s supply is 1.25. What quantity will the firm supply at the new price?

Will a profit-maximising firm in a competitive market produce a positive level of output in the long run if the market price is less than the minimum of AC? Give an explanation.

When do we say that there is an excess supply for a commodity in the market?

Distinguish between a centrally planned economy and a market economy.